Deep Dive
1. Post-Unlock Supply Glut (Bearish Impact)
Overview:
On October 28, 2025, 181M GRASS tokens (72.4% of circulating supply) were unlocked, primarily allocated to early investors and contributors. Historically, similar unlocks triggered 10–30% price drops (CoinJournal).
What this means:
The sudden influx increased selling pressure, compounded by low liquidity (turnover ratio: 0.258). GRASS’s circulating supply surged 58% post-unlock, creating an imbalance between new tokens and demand.
Key watch:
Monitor exchange inflows via Nansen to gauge whether large holders are distributing.
2. Technical Breakdown (Bearish Momentum)
Overview:
GRASS broke below its 30-day SMA ($0.316) and key Fibonacci support at $0.302. The MACD histogram turned negative (-0.0046), signaling bearish momentum.
What this means:
Traders exited positions after the breakdown, targeting the next support at $0.282 (2024 low). The RSI at 40.8 suggests room for further downside before becoming oversold.
Key watch:
A close above $0.312 (2024 low) could stall declines; sustained trading below $0.28 risks a drop to $0.20.
3. Sector-Wide Risk Aversion (Mixed Impact)
Overview:
DePIN tokens underperformed as Bitcoin dominance climbed to 59.3% (up 0.35% in 24h). The Altcoin Season Index fell 9.7% weekly, reflecting capital rotation to BTC/ETH.
What this means:
Grass’s AI/data narrative lost traction amid broader risk-off sentiment. Competitors like Helium Mobile (+28% in 30d) absorbed residual DePIN demand.
Conclusion
GRASS faces a triple threat: post-unlock dilution, technical breakdowns, and sector-wide apathy. While its $10M funding round (Blockworks) validates long-term potential, near-term risks dominate. Key watch: Can GRASS hold $0.28 with BTC stable? A break below this level could trigger algorithmic sell orders.